Construction glossary
Retention
Written by the PleoStack Editorial Team.
Reviewed by Manju Madiwal · Head of Product
Last reviewed 14 July 2026.
Definition
A percentage of certified payment withheld under a construction contract as security for completing obligations and correcting defects.
What it means on a project
The practical reading, without treating one region's contract language as universal.
Retention is commonly released in stages, such as at practical completion and after the defects-liability period.
The percentage, cap, release conditions, alternatives, and legal limits depend on the contract and jurisdiction.
Terminology, contractual effect, and regulatory requirements vary by jurisdiction and contract. Confirm the definition used on your project before relying on this glossary entry.